CPE 311 – Engineering Economy

      

        CPE  311 – Engineering Economy  

        Assignment to be submitted on October  5,  2012

1.    A machine cost  P 75 500 and will have a salvage value of  P  3 500  when retired at the end of  6  years. Prepare a depreciation schedule for this asset using ( a ) straight-line method  and ( b ) using sinking fund method at 8 % interest rate.

2.    An equipment  cost  P 50 000 and will have a salvage value of  P  3 000  when retired at the end of  4  years. Prepare a depreciation schedule for this asset using  sinking fund method at 8 % interest rate. What is the accrued depreciation after 2 years ?

3.    Determine the effective rate per conversion period if the nominal rate is 6 % compounded quarterly.

4.    A debt of  P  50 000 is payable semiannually. The debtor will accumulate a sinking fund by equal periodic deposits, on interest dates invested at  5 % compounded semiannually, to pay the principal at the end of 10 years. Determine the debtor’s semiannual  expense  on account of the debt.

5.    A debt of  P 60 000 with interest at 6 % payable semiannually is to be amortized by equal payments at the end of each 6 months for 4 years. Determine the periodic payment.

6.    In order to pay off the principal of a loan of  P  60 000 a man will invest  P  1 500 at the end of each month  at  6 %  compounded monthly. On what date will he first be able to pay the  P  60 000 and what will he have to add in the fund on that day ?

7.    A fund is being created by investing  P 2 000 at the end of each year at 8 %. Determine the date on which the fund will first exceed  P  53 000, and what payment, if any, will be needed to complete a fund of exactly  P  53 000 on that date.